High street fashion retailer M&Co has gone into administration, putting nearly 2,000 jobs at risk.
Teneo Financial Advisory has been appointed as joint administrators as the search for a new buyer begins.
It marks the second time the firm has faced collapse in two years.
In 2020, the firm closed 47 stores and axed 381 jobs as part of a pre-pack administration deal.
Now 14 stores spread across the Highlands and Islands, Moray and Aberdeenshire are facing closure as the company collapses.
The firm, formerly known as Mackays, currently has stores in Stornoway, Inverness, Thurso, Wick, Kirkwall, Nairn, Dingwall, Elgin, Banff, Buckie, Inverurie, Peterhead, Aberdeen and Stonehaven.
It currently employs 1,910 staff in 170 shops across the UK.
Staff in the Orkney store shared a heartfelt message on Facebook thanking customers for their support and said they remained “positive” despite the news.
Meanwhile, customers across the country have raised concerns about getting refunds or exchanges and questioned whether they would still be able to use gift cards.
A post on the Facebook page of the Inverurie store explained loyalty cards and vouchers would not be accepted during the administration period and gift cards would be accepted, as long as they are not more than half the value of the total sale.
Purchases made before December 9 can be returned within 28 days, but those made after that date only have 14 days to be returned.
It also confirmed the administrators would be honouring all orders.
Rising costs and changes in customer confidence
The announcement marks the latest blow to the country’s High Streets.
The company is expected to continue trading both online and in-store until a new owner can be secured.
M&Co’s website was taken offline this morning before being restored in the afternoon.
A spokesman for Teneo says rising costs and a decline in customer confidence had severely impacted the company’s trade.
He said: “Like many retailers, the company has experienced a sharp rise in its input costs, which has coincided with a decline in consumer confidence leading to increased pressure on cash flows and trading losses.
“No immediate redundancies have been made and the joint administrators are exploring a potential sale of the business in an accelerated timeframe, during which time the company will continue to trade from its stores and website.”
